Petrobras’ new CEO to focus on increasing oil and gas output

Maria das Gracas Foster is Petrobras’ new chief executive, replacing Jose Sergio Gabrielli, who has decided to enter politics. Foster said her main focus would be to increase the company’s oil and gas output. “Production targets have always been a priority in Brazil for Petrobras,” Foster said. “I’m working within my priority of exploration and production.” Unplanned stoppages on aging platforms, delivery delays and tight safety regulations have dampened the company’s goal of becoming the third largest oil producer in the world, after Russia and Saudi Arabia through the next decade. Petrobras’ fourth quarter net earnings for 2011 dropped 52% due partly to the record amounts of gasoline the company imported to meet local demand. The company had been criticized by analysts for its plan to build five new refineries, instead of focusing on areas that could produce better returns on investment.
After the discovery of huge offshore reserves called subsalt, Petrobras initially planned to refine crude from its offshore fields into superior, value-added fuels and products for export. Now it is rethinking its refining options and plans to build two refineries are also being revised so that the two facilities will be able to produce fuels that will be suitable for the lower quality fuel demand in the domestic market. (February 13, 2012)